From Joseph Inokotong, Abuja
Germany has announced the sum of €18 million to subsidise the cost of disaster risk insurance for qualifying African Risk Capacity (ARC) group member states.
This was disclosed yesterday on the sidelines of the ongoing 2021 United Nations Climate Change Conference (COP26) in Glasgow, Scotland.
The fund would enable cash-strapped African governments and humanitarian agencies to prepare for disasters by funding insurance coverage for droughts and tropical cyclones, thereby mitigating the impacts of climate change for the poorest and most vulnerable communities.
In her statement, the Parliamentary State Secretary to the Federal Ministry for Economic Cooperation and Development (BMZ), Dr.
Maria Flachsbarth, stated that the commitment would help establish a Premium Support Facility for African governments and humanitarian agencies wishing to purchase climate-related insurance.
United Nations Assistant Secretary-General/Director-General of the African Risk Capacity Group, Ibrahima Cheikh Diong, said: “We are extremely delighted about the consistent support of the German government to disaster risk reduction and mitigation in our member states.
“The grant is a clear testimony of the value of smart partnerships for smart disaster risk management and financing for early action. Through this assistance, we are optimistic that other partners will embrace our pitch for a Continental Premium Support Facility to help institutionalise sovereign parametric insurance culture in the region”.
Member of the Management Committee at KfW Development Bank, Christian Krämer, said: “Germany has been a long-standing supporter of the African Risk Capacity.
“Earlier this year, in Germany we were affected by devastating floods – we have experienced ourselves the importance of preparedness and the vital role that insurance can play in recovery.”